The thought of ending a marriage typically comes with a great deal of uncertainty, especially regarding money matters. You might feel concerned about your ability to survive without financial help from your spouse.
While economic worries nearly always accompany a divorce, you have the power to minimize some potential money-related hardships. Taking the financial steps below before you or your spouse files for divorce can set you up for economic stability.
Know your expenses
A top benefit of expense tracking is that it allows you to see where you might overspend and make frugal changes to your budget. For example, say that you notice your entertainment expenses are substantial. When armed with knowledge about your spending habits, you can trim your entertainment budget to save money for your post-divorce future.
Get your own credit card
Get yourself a new credit card (in your name only) before you file your divorce papers, as it might be harder to do so after you’re divorced. Taking this step ensures you have credit to fall back on should you face an emergency as a single individual. It also helps you continue building your credit.
Minimize potential divorce expenses
Explore the different ways to obtain a divorce under California law. For example, try to set the stage for an uncontested divorce as it typically costs less (in money and time) than a contested divorce. You also have the option of getting a mediated or collaborative law divorce, both of which generally cost less than court litigation.
Once you begin considering the economic side of divorce, you will likely discover more ways to improve your financial circumstances now and in the future.